Quote In Today News:-
Iraq's internal debt per capita reaches 1.7 million dinars: is it worrisome?
Shafaq News/ Iraq's internal debt has reached 70 trillion dinars ($48 billion), with each citizen's share of the debt amounting to 1.7 million dinars ($1,170), according to economist Manar al-Obaidi.
The debt has been growing steadily in recent years, due to a combination of factors including the war against ISIS, the decline in oil prices, and the COVID-19 pandemic.
The government has been able to finance the debt through a combination of borrowing from domestic banks and issuing treasury bills. However, the growing debt burden is a major concern for economists, who warn that it could crowd out private investment and lead to higher inflation.
Economist Abdul Rahman al-Mashhadani, however, downplayed the significance of the internal debt, arguing that it is not as dangerous as the external debt.
"The internal debt is not the dangerous element in the world's countries, but the external debt, because the internal debt is shared by many institutions, so its impact is weak, although it is considered a debt that the government owes to financial institutions and individuals," he said.
Mashhadani pointed out that the internal debt is owed to government institutions, such as the Rafidain, Rashid, and Iraqi Trade banks, and the Central Bank. As a result, he said, it is a government debt to the government and the government can cancel its interest or write off these debts.
The International Monetary Fund (IMF) has removed Iraq from its list of debtor countries, as the country's external debt is now below the IMF's threshold of 100% of GDP. The IMF's decision is a sign of confidence in Iraq's economy, and it could help to attract foreign investment. However, economists warn that Iraq still needs to address its debt problem, as the high debt burden could constrain economic growth in the long term.
IQD WILL BE $1.32 INSTEAD OF $1,320 PER USD DISCUSSION
Iraq's Ministry of Finance disburses salaries to Kurdistan for February
Shafaq News/ The Iraqi Ministry of Finance announced on Monday the disbursement of salaries to the Kurdistan Region for February 2024, aligning with the directives of Prime Minister Mohammed Shia Al-Sudani and the approval of the Minister of Finance.
According to the Ministry's statement, the salaries encompass funding for various categories, including civilian employees, allowances for people with disabilities, retirees' salaries, martyrs' and orphans' entitlements, and financial allocations for departments in the Kurdistan Region.
"The Ministry has duly informed the Federal Court about the content of the relevant letters concerning the salary disbursement. However, the release of salaries for March is contingent upon the completion of localization requirements by the Kurdistan Region." The statement explained.
The Ministry emphasized that the Kurdistan Regional Government is urged to "bear legal responsibility for the accuracy and validity of the information and data provided to regulatory and legal authorities."
Salaries are among the main outstanding issues between the Iraqi and the Kurdish governments, along with the oil export and disputed areas.
Last month, the Federal Court, Iraq's highest judicial authority, mandated to localize the salaries for Kurdistan's employees in government banks starting this February.
The Court's new decision has sparked anger and criticism among Kurdish politicians, with some claiming that the decision is unconstitutional and politically motivated and that it undermines the autonomy and finances of the Kurdistan Region.
However, some observers and experts argue that the decisions are correct and consistent with the law and the constitution and that they will ensure the rights of everyone and end the suffering of the Region's employees who have delayed receiving their salaries for months.
